Cisco To Buy Michigan-Based Duo Security In $2.35B Deal

Michigan's cybersecurity unicorn has been snapped up. 

What Happened

Cisco Systems, Inc CSCO, the world’s largest enterprise security business, announced plans to acquire Ann Arbor-based cybersecurity company Duo Security.

Duo Security provides unified access security and high-tech authentication as a way to verify the identity of users and health of their devices before giving access.

Cisco intends to pay $2.35 billion as well as equity awards for Duo Security’s shares, warrants and incentives.

Why It’s Important

Duo’s service-based software model will be integrated with Cisco’s existing network access control products, providing extended application access control.

Duo said it will contribute their developed identity awareness into several of Cisco’s cloud-delivered products.

“Duo will benefit from being part of a larger organization with established go-to-market reach, scale and partnerships. We will also have support and resources as part of Cisco to accelerate our strategy. I view this as an exciting opportunity to continue to innovate and invest in the future,” Duo Security CEO Dug Song said in a letter to employees. 

What’s Next

Pending the close of the deal, both companies will continue to operate separately and remain focused on executing future strategies, Song said. 

The acquisition is expected to be finalized in the first quarter of Cisco's fiscal 2019; Song will continue with Duo as its general manager. 

Related Links:

A Michigan Startup Milestone: Cybersecurity Firm Duo Tops $1 Billion In Market Value

What Wall Street Thinks Of Cisco's Q3 Earnings

Duo Security co-founder and CEO Dug Song, left, Cisco security business SVP Gee Rittenhouse and Duo Security co-founder and CTO Jon Oberheide. Photo courtesy of Cisco.